What's an Internet Lawyer to do? Move to a state that appears pro-Internet? Is that what this whole Internet sales tax problem is starting? State "safe havens" for Internet businesses?
Let's review. First New York, and now California, Hawaii, North Carolina, and Rhode Island, are all clamping down on major online retailers by requiring they collect and remit state sales taxes if the affiliate marketer that earned the commission for the sale is located, or has minimum contacts, with a state.
Perhaps you were under the mistaken belief that Congress passed a moratorium of sorts on "Internet taxation". Well, no, that is not what Congress did. It prohibited the assessment of taxes on "Internet service". So you won't see a sales tax on top of your monthly bill for Internet access through your ISP. That's it.
Web businesses are now being subjected to state laws that really are impacting in a negative way the free flow of commerce online. So, does Congress or the Courts try to impinge on the sovereign rights of states? And that is the question that as an Internet Lawyer I consider central to defining who, ultimately, will control the web. And can the same question be asked on a global basis? When countries start passing laws that impact global online commerce, what do we do then? Tell our clients to not leave the country for fear of dire consequences?
